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HomeMy WebLinkAboutC.054.93009_0165JUK 148 10-349-65 Public School Building Capital increase 30,948 10-663-0760 Iredell Statesville/PSBC increase 30,948 VOTING: Ayes - 5; Nays - 0. HEALTH INSDRANCH ADMINISTRATOR: Mrs. Carolyn Harris, Personnel Director, presented this to the board. In the past couple of years Canada Life has provided the group life insurance policy for the county. A proposal has been received from Companion Life Insurance Company to provide identical coverage at a lower rate. The proposal given the county is for a two-year period and would save the county approximately $8,800 over that two-year period. Companion Life is a stock company, a wholly owned subsidiary of Blue Cross/Blue Shield of South Carolina and was founded in 1970 with operations with 37 states. They have more than $21 million in assets and more than $4.1 billion of life insurance in force. They have earned an A rating with Best. Mrs. Harris feels comfortable with the company. All full-time employees (those working twenty hours or more per week) would have the $25,000 life insurance and AD&D. There is also a $5,000 dependent coverage that is available for purchase by the employee. The retirees will be able to keep a $10,000 coverage until age 65. Staff recommends the proposal from Companion Life to provide this life insurance for the county staff. MOTION from Commissioner Madison to approve Companion Life for life insurance carrier for the county employees. VOTING: Ayes - 5; Nays - 0. Mrs. Harris discussed the health insurance for county employees. Presently there is a self-funded plan which is administered by Blue Cross. A part of the package is stop loss insurance for specific and aggregate stop loss. Sometime ago the NCACC contracted with Sedwick James of the Carolinas to work with counties throughout the state to provide health insurance at lower cost to be able to give consultant and brokerage services as needed by the counties. The plan through the NCACC is also administered by Blue Cross. Until this year there was no program presented that saved money. The Association has been able to purchase reinsurance for the stop loss insurance that has been purchased through Blue Cross at a saving of 30%. In dollars that is $32,000 savings for the next fiscal year. Bruce Hill, senior consultant with Sedwick James, wrote a letter confirming that they have the same benefits that the county now has with Blue Cross, except for two differences: (1) A $75 deductible added to the plan that would be charged to anyone who is covered and goes to the emergency room unless that visit is the result of an accident or if they are not admitted when they go to the emergency room. A lot of people are using the emergency room as a doctor's office, and this is a punitive method of trying to get employees to go to a physician rather than the emergency room. (2) Under the Association plan, cost -wise doctors will be reimbursed at 90%. Non cost -wise physicians will be reimbursed at 70%. Currently all doctors are paid at 80%. That is a cost savings measure. The majority of employees have cost -wise physicians, Mrs. Harris said. There would be no administrative procedure to switch. There would not have to be an enrollment since Blue Cross administers both plans. Staff recommends adoption of this plan with Sedwick James.